Bitcoin is a decentralized crypto-currency, which is based on the peer-to-peer network, and was introduced
by Satoshi Nakamoto in 2008. Bitcoin transactions are written by using a scripting language. The hash value
of a transaction’s script is used to identify the transaction over the network. In February 2014, a Bitcoin
exchange company, Mt. Gox, claimed that they had lost hundreds of millions US dollars worth of Bitcoins in
an attack known as transaction malleability. Although known about since 2011, this was the first known
attack that resulted in a company loosing multi-millions of US dollars in Bitcoins. Our reason for writing this
paper is to understand Bitcoin transaction malleability and to propose an efficient solution. Our solution is a
softfork (i.e., it can be gradually implemented). Towards the end of the paper we present a detailed analysis of
our scheme with respect to various transaction malleability-based attack scenarios to show that our simple
solution can prevent future incidents involving transaction malleability from occurring. We compare our
scheme with existing approaches and present an analysis regarding the computational cost and storage
requirements of our proposed solution, which shows the feasibility of our proposed scheme.

Indexing

JIPS is also selected as the Journal for Accreditation by NRF (National Research Foundation of Korea).

This journal was supported by the Korean Federation of Science and Technology Societies Grant funded by the Korean Government (Ministry of Education).

Society

ABOUT THE SOCIETY

Ever since information processing became one of the most important industries in the country, computing professionals have encountered a growing number of challenges.
Along with scholars and colleagues in related fields, they have gathered together at a variety of forums and meetings over the last few decades to share their knowledge and experiences,
and the outcomes of their research. These exchanges led to the founding of the Korea Information Processing Society (KIPS) on January 15, 1993. The KIPS was registered as an incorporated association under the Ministry of Science,
ICT and Future Planning under the government of the Republic of Korea. The main purpose of the KIPS organization is to improve our society by achieving the highest capability possible in the domain of information technology.
As such, it focuses on close collaboration with the nationâs industry, academic, and research communities to foster technological innovation,
to enhance its members' careers, and to promote the advanced information processing industry.